Riverhead supervisor: ‘No turning back’ on the termination of $40 million Calverton land deal

There’s no turning back. 

That’s the word from Supervisor Tim Hubbard regarding termination of the land deal with Triple Five affiliate Calverton Aviation & Technology.

Hubbard, fielding a question during the Heart of Riverhead Civic Association meeting Saturday, where he was the featured speaker, said the town has no intention of settling the lawsuit filed this month by Calverton Aviation & Technology.

“That was a bad deal from day one,” Hubbard told the civic group members. 

The supervisor reiterated those sentiments in answering questions from residents during last night’s Town Board meeting. Three of the four council members endorsed that position when asked, saying they would not support settling the suit. Council member Bob Kern remained silent.

Hubbard said Saturday town officials knew a lawsuit challenging the town’s termination of the contract with CAT was inevitable. “We knew [the lawsuit] would happen,” he said.

“We feel by doing what we did and turning it over to the IDA, it gave us the absolute best opportunity to hold up in court, that we would be able to walk away from this deal without having to lose any battle in court,” Hubbard said.

The town and CAT signed an agreement in March 2022 that modified the parties’ November 2018 purchase agreement in which the town agreed to subdivide its remaining 2,100 acres of land at the Calverton Enterprise Park and sell 1,644 acres to CAT for $40 million.  After the town was unable to subdivide its land, as required so that it could complete the sale — the subdivision was held up by permit requirements imposed by the State Department of Environmental Conservation — the town and CAT entered into the March 2022 agreement.

In the March 2022 agreement, CAT and the town agreed to make a joint application to the Riverhead Industrial Development Agency for financial assistance from the RIDA to CAT for the first phase of development of the site.

The March 2022 agreement provided that, should the RIDA decline to issue “a final authorizing resolution” approving the application, either party could declare the November 2018 contract null and void.

The Riverhead IDA on Oct. 23 declined to issue the final authorizing resolution. The next day, the Riverhead Town Board voted unanimously to end the contract. 

CAT filed a lawsuit against the town on Jan. 8, seeking to enforce the contract of sale and seeking damages in an unspecified total amount for the town’s alleged breach of contract. On the same day, CAT filed a notice of pendency of the lawsuit with the Suffolk County Clerk, providing legal notice that it has a claim against the title to the land. The notice affects all 2,100 acres owned by the town — not just the 1,644 acres that were the subject of the purchase agreement — because the property was never subdivided. As long as the notice of pendency, also known as a lis pendens, is in place, the town is effectively prevented from selling or leasing any of the land due to the “cloud” on its title. 

MORE COVERAGE: CAT sues Riverhead Town, seeking to enforce contract in $40 million Calverton land deal

But a Town Board majority expressed resolute opposition to settling the action with CAT in order to move forward with CAT or some other purchaser. 

“All our legal experts are telling us we did it the best way we could to make it as bulletproof as it could be,” he said. 

“Our legal experts are comfortable that we’re going to survive this in court. And yes, we are going to fight it all the way. There’s going to be no turning back on that.”

Town Attorney Erik Howard said last night CAT has not yet served the town with the summons and complaint it filed in State Supreme Court, Suffolk County on Jan. 8.

This article was reported by Alek Lewis and written by Denise Civiletti.